Finding a business partner in China
China is one of the world’s most attractive markets for entrepreneurs looking for worldwide expansion, however doing business in China is a completely different deal from doing business in Europe, or in the U.S., whether it be because of different cultures or different business habits.
Finding a business partner in China is probably the most important thing in setting up a running business in the middle kingdom. Indeed, a local partner can help you with the complicated Chinese regulations and legal processes, and will be able to deal with the Chinese government if ever needed. On top of that, a business person or a China-based company with good contacts in the country will for sure be of good help to you.
Set up a marketing strategy in China
#1 Before searching for a business partner in China, entrepreneurs have to set up a marketing strategy that they’re sure of and that’s operative. It is recommended to find a business partner, but some firms decide to self-operate in China, and that’s sometimes a good initiative, although gratification might take longer to come.
Operate a China business review
#2 To make sure of the credibility of your potential Chinese business partner, it is recommended to operate a business review of it : collecting speeches from customers, press journalist, former employees, and every possible organism that came in contact with the firm, will be useful in building an accurate picture of it, thus avoiding any case of falsified legal fillings and financials
Understand Chinese market
#3 Running a market research beforehand will help you define the added value that can be provided, and the size of the opportunity. Understand the market and its potential will be the base to determine your need, in particular when finding a business partner in China.
Find innovative solution
#4 Sometimes, buying a company in the same field might prove difficult, because of the too small size of the market or of the opportunity in China. Searching in adjacent markets or complementary products, building a list of new options for your market strategy in China will sometimes help you find innovative solutions in your search for a business partner.
Filter against specific criteria to find the perfect partner
#5 After having built a list of potential companies, it is important to effectively filter against specific criteria in order to find the perfect company: brand strength, market share, distribution capabilities, partner interest, local contacts…
Targeting China market
#6 Depending on your marketing strategy, it might be better to concentrate on commodity players or low priority groups, if you’re searching for low-cost sourcing ; or to look for market leaders and niche players. In any case, you have to accurately focus on where you’re willing to hit in the Chinese market. Once again, it will be about identify your key needs which will lead you finding a business partner in China.
Leverage your aim
#7 A good partner in China is a company that’s about the same size as yours. Bigger firms will out-leverage yours, but smaller might not have a network big enough to get things done in China.
Retain a Chinese lawyer
#8 Retain a Chinese lawyer before attempting to enter the Chinese market: your business partner will help you, but as the paperwork and regulations are everything but transparent, it’s a good idea to find one to help you navigate through it without worrying much.
Eventually, after having found the ideal business partner in China, it’s recommended for the entrepreneur to search in depth for its primary motives, interests and decisions; in order to build a long-term and effective strategic partnership.